Music streaming uncovers key data-driven consumer insights

As people use more mobile devices and apps, uncovering
actionable insights in marketing is becoming a very difficult task. Marketers
have a ton of data, but few companies have figured out how to effectively
leverage that data to deliver targeted content at scale.
Data-driven insights offer a key to effectively engaging
consumers. But how does one collect and analyze enough data to engage
individuals in a scalable approach? Streaming data may be the answer,
according to a recent
article
. And subscription streaming is becoming a key driver of the nearly
$15-billion music industry, according to the International Federation of the
Phonographic Industry (IFPI), a music lobby group, which recently released
its annual Digital
Music Report
.

As more consumers use music streaming services, companies
like Spotify and Pandora are mining those streams for user insights.
Spotify’which expects to have 100 million users by the end of this year’knows
how and when people listen to music. The company knows this by not only
tracking the songs people are streaming, but through users who label their
activities, according to Spotify Chief Revenue Officer Jeff Levick.
“People are soundtracking their lives and creating
playlists with names like ‘shower,’” Levick said during a presentation at
the IAB’s Mixx conference. “We have over 39,000 shower playlists on
Spotify.” By analyzing patterns related to shower playlists, Spotify
uncovered numerous insights about its users.
In fact, Spotify learned that most (44 percent) of the users
who create shower playlists are between ages 18 and 24, followed by 23 percent
of users who are ages 25 to 34. Additionally, 68 percent of the shower
playlists are created by men, compared to 32 percent of women.
Not to mention, music streaming services can help artists
find their fans. For instance, when country music singer Hunter Hayes released
a new single, 21, earlier this year, he used data from Spotify to plot his
21 tour stops. Hayes released 21 on streaming platforms before
physical retail or digital stores. Based on that data, Spotify identified
cities with the highest volume of users listening to the singer’s songs
compared to other locations. Hayes performed in places like Western Carolina
University, Kent State University, West Point Eisenhower Hall Theater, and
University of Oklahoma.
“That data’along with country radio airplay and single
sales ‘ is invaluable to identify where you have an active, passionate audience
currently excited about an artist’s music,” Warner Music Nashville’s
Jeremy Holley told Mashable.

Spotify’s competitor, Pandora, offers artists a similar
feature through tools for analyzing fan engagement on its music streaming
service. With Artist Marketing Platform (AMP), Pandora lets artists know which
songs are performing well based on factors like the number of people listening
to the song, the number of likes the song garners, as well as the general
location of their fans. Real-time data from streamed music can also allow
brands to target listeners beyond basic demographic information. Besides
targeting listeners based on age or gender, brands can look at the days of the
week and organize around what it is people are doing when they’re doing it and target smarter.